FTX Rolling Out A Derivatives DEX Is The ‘Start of an Entirely New DeFi Ecosystem’


Crypto derivatives exchange FTX is going full-on in DeFi (decentralized finance).

The exchanges unveiled its alternative exchange for the fast-growing DeFi space today that will be built on top of scalable blockchain Solana.

Why Solana?

FTX CEO Sam Bankman-Fried clarifies the reasons for choosing to run it on Solana in blunt terms. “It's own fully decentralized blockchain, don't need to trust centralized sidechain,” and it’s “fast as fuck.”

While Ethereum, which is facing issues of high fees, congestion, and scalability because of the ongoing DeFi craze. It can only handle 15 transactions per second; Solana can “process 10,000 times as much as Ethereum, and it's 1,000,000 times cheaper.”

This is not only “incredibly bullish for Solana,” but makes it “one of the very few ETH killers that have a real chance. You just need one big successful project like FTX’s DEX to bootstrap an entire ecosystem,” said analyst Qiao Wang.

Dubbed “Serum,” the project touts to be “fast, and cheap, powerful, and fully cross-chain compatible, and truly, fully trustless.” It is expected to launch in the coming weeks.

The platform is permissionless, and FTX has no power over it. “It is up to you, the crypto community, to use it as you will,” it says.

This project is backed by a long list of partners including FTX, Alameda Research, Solana Genesis Block, Robot Ventures, CMS, Evernew Capital, Kyber Network, Sino Global Capital, 3Commas, Coingecko, TomoChain, Multicoin Capital, Gauntlet Network, 币coin, Factblock, Aleph.im, Folkvang.io, and AKG Ventures.

The initiative claims to solve some of the structural limitations of the DeFi space by offering a scalable and liquid DEX for derivatives.

To tap into the DeFi sector, Serum will be fully interoperable with Ethereum. A proxy bitcoin token will also be offered by the exchange to allow users to trade the leading cryptocurrency on the Solana blockchain.

The platform will have its own token SRM, 5% of which will be distributed to FTX’s FTT holders over time.

Solana’s native token has already doubled in value over the weekend and got listed on FTX as well.

Just days before, FTX listed the popular “valueless” token YFI, and the reason for all this simple, “DeFi is hot, and exciting, and messy,” and of course filled with potential, says Bankman-Fried. It has “the potential to build an entire financial ecosystem without relying on trust or censorship,” he said.

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